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Canada OKs China buying oil and gas firm Nexen

China National Offshore Oil Co., known as CNOOC, said Saturday that it is delighted that the Canadian Ministry of Industry has approved its $15.1 billion takeover of Canadian oil and gas producer Nexen.

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BEIJING (AP) — China National Offshore Oil Co., known as CNOOC, said Saturday that it is delighted that the Canadian Ministry of Industry has approved its $15.1 billion takeover of Canadian oil and gas producer Nexen.

When final, it will be China's largest overseas energy acquisition, coming at a time when other Chinese companies such as telecommunications giant Huawei are encountering difficulties expanding in North America, Europe and Australia.

Despite approval of this deal, the Canadian government said it will reject any future takeovers in the oil sands sector by foreign state-owned companies unless there are exceptional circumstances.

"To be blunt, Canadians have not spent years reducing ownership of sectors of the economy by our own governments only to see them bought and controlled by foreign governments instead," Canadian Prime Minister Stephen Harper said.

In 2005, U.S. lawmakers blocked a CNOOC $18.5 billion bid to buy the oil company Unocal over national security concerns.

Wang Yilin, chairman of state-owned CNOOC, said the approval is recognition of the acquisition's long-term economic benefits for Calgary, Alberta and Canada.

Nexen is headquartered in Calgary in Alberta province and is to remain there after CNOOC's takeover as its head office for north and central American operations.

CNOOC Chief Executive Officer Li Fanrong said the takeover will bring opportunities for Nexen employees, partners and CNOOC. "We are delighted that the Ministry of Industry has concluded that this transaction represents a 'net benefit' to Canada," he said.

China's Ministry of Commerce could not be reached for comment Saturday.